In the present paper, an investigation on the structural and photoluminescence (PL) properties of SrGd2O4:Eu3+ ceramic phosphors synthesized by homogeneous precipitation method followed by combustion process has been reported. The samples, annealed at 1200°C, were crystallized into orthorhombic phase without any impurities. Microscopic studies revealed the irregular morphology of the obtained ceramic phosphor particles having sizes in the range of 0.3–3µm. The characteristic photoluminescence properties and decay curves were studied in detail as a function of Eu3+ concentration and temperature. The Eu3+ doped ceramic samples illuminated with UV light revealed the characteristic red luminescence corresponding to 5D0→7FJ transitions of Eu3+. The concentration quenching phenomenon of Eu3+ ions in the present host, analyzed in the light of ion-ion interaction, indicated multipolar interaction between Eu3+ ions. Finally, the intensity parameters (Ω2, Ω4) and various radiative properties such as stimulated emission cross-section (σe), gain band-width (σe×Δλeff) and optical gain (σe×τexp) of Eu3+ in the SrGd2O4 ceramic phosphors have been calculated by using Judd-Ofelt theory. The present phosphor system exhibited efficient red emission with high red color purity (95%) and adequate thermal stability even at 200°C. Present research broadly indicated the suitability of SrGd2O4:Eu3+ ceramic phosphor for display applications.